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GAP INSURANCE


FRANKP60

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Hi all ,can anyone advise please, do know this is not Motor home related,but normally helpful on this site ,Buying a second hand car and was told about GAP INSURANCE and was Quoted £399 for three years by Citroen.Onlooking on internet I find that with a company called ala.co.uk the cost is £97.00 for three years.Big difference.!!!!

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Gap IMO is worth it if buying new or expensive as it fills the gap between insurance payout which is market value and the true cost of like for like replacement. If its written off you will effectively get what you paid. A very good friend of mine used to work for gap and if assured me it is worth it however never pay what they quote as the dealer pays very much less and makes a good profit. Last time i had it they offered it at 300 ish and i told them i new exactly what they had paid but appreciated they needed to make some profit so counter offered 200 deal done. Like any insurance its only any good if you use.
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But I have to counter your argument with the fact that if you get the right motor insurance then, certainly in the first 12 months, you will get new for old cover and hence gap insurance will be worthless for that first 12 months.

 

We have bought 4 brand new Fords in the last 12 months and as we only keep them for a maximum of 12 months the dealer has actually advised us to make sure our insurance covers new for old and then not take gap insurance.

 

It's worth checking your insurance terms and conditions before parting with your money.

 

Keith.

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£399 for gap insurance is taking the piss, we where offered something like that on new Suzi, I pointed out my normal car insurance offers new for old on first year and as I was buying a outgoing model there's no way they could supply a new car to same spec after that anyway, salesman immediatly dropped price to £150, which I still refused. Due to the way they tried to push this on us it left a "nasty taste in the mouth" and I would certainly not deal with that dealer ever again.
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Keith

fare point however i am not aware of an insurance that truly is new for old as far as i know there will always be a short fall, i could be wrong though.

 

Colin

as i say never pay there opening offer dealers can make more profit on extras than on the car and there on commission hence they push it.

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ips - 2013-07-18 7:55 PM

 

Keith

fare point however i am not aware of an insurance that truly is new for old as far as i know there will always be a short fall, i could be wrong though.

 

Colin

as i say never pay there opening offer dealers can make more profit on extras than on the car and there on commission hence they push it.

 

300% markup isn't a commision it's a piss take, along with 'paint guard', due to the high profits this leads to misselling, and thats as much as I'm saying until the investigation into the methods used on our sale is completed. >:-(

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Agreed Colin

all kinds of extras are offered i took none inc gap when i bought my 13 plate car in march but as i say gap at the right price is peace of mind. I chose not too on this occasion as my business bought it so not my money as such.

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Have to say that this is yet another area of marketing that is ripe for investigation. On buying a new vehicle I was pressurised into buying gap insurance on the basis that it was a 'no brainer'. A prime example of miselling. The kick back and hence incentive to sell gap insurance for the dealers is huge. The Financial Services Authority (FSA), or whatever it is now called, needs to get stuck into this one. Unfortunately some insurers have ceased to offer new for old insurance in the first year in the hope that they can sell you gap insurance and maximise profits by selling you two policies. I'm afraid it's further evidence of the predator nature of insurance companies and car dealerships trying to extract the maximum amount of money out of its customers.
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  • 2 weeks later...
Guest adhple

I took out VW Gap insurance on my 2011 VW Eos it cost me £400 for 3 years and only after when I checked online I found I could have purchased Gap insurance for £200 Yes New Car rip off -- BUT I needed to claim as I wrote the car off, They paid me the full value I paid for the car 2 years ago.

So yes it is worth it, but buy on line.

 

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